(11 May 2015 – Australia) Suncorp Bank provided its quarterly update on Bank assets, credit quality and capital for the March quarter on 8 May.
Suncorp Bank continued to deliver quality lending growth in the March quarter, with retail lending up 4.6 percent.
Credit quality improved and the Bank’s capital position strengthened further.
Chief executive John Nesbitt, said credit quality and mortgage growth were maintained while major milestones were achieved in key projects, the Ignite banking platform and Basel II Advanced Accreditation Program.
“The Bank made strong progress in the delivery of these strategic programs of work and they remain on track” Nesbitt said.
“Total lending in the quarter increased by 3.3 percent to A$52 billion.
“The Bank has maintained discipline in its approach to lending with strengthened serviceability standards and improved credit security and scoring.
“This is testament to our focus on achieving sustainable, high quality growth in our target segments,” Nesbitt said.
“The Bank continues to optimise the diversification and composition of its funding sources.
Commercial and Agribusiness lending fell by 1.8 percent, driven predominantly by the managed exit of a small number of exposures, and a focus on quality and sustainability.
Impairment losses reduced to A$16 million or 13 basis points of gross loans and advances, within the target range of 10 to 20 basis points.
Gross impaired assets reduced 3.8 percent to A$252 million. Total provision coverage remains conservative and includes the drought overlay introduced in June 2014.
The capital position of the Bank remains robust with the Common Equity Tier 1 (CET1) ratio increasing to 8.82 percent as at 31 March 2015.